The Labor Department’s monthly unemployment report was even more disappointing than expected. Thankfully, stocks and exchange traded funds (ETFs) haven’t dropped in response, but they’re not moving up, either.

  • The U.S. economy added just 39,000 jobs in November and the unemployment rate jumped to 9.8%. This is the longest stretch that the rate has been above 9% since World War II, reports Motoko Rich for The New York Times. PowerShares QQQ Trust (NASDAQ: QQQQ) is the best-performing major index so far today, up about 1%.
  • Strength in Germany and France helped drive the eurozone’s economy in November; the purchasing manager’s index rose to 55. Any number above 50 marks growth. The two economies helped make up for trouble in debt-laden countries like Ireland, Portugal and Spain, reports Reuters. SPDR DJ Euro STOXX 50 (NYSEArca: FEZ) is up nearly 1% in morning trading; Germany and France are about 65% of the ETF. [Europe ETFs: Are They a Buying Opportunity?]
  • The jobs report has certainly been good for one asset class: Treasury bond prices are ticking higher in response to the numbers, which seem to suggest that economic weakness will be the order of the day for some time to come, The Wall Street Journal reports. Vanguard Extended Duration Treasury (NYSEArca: EDV) is up 0.7% so far. [The Rush for Bond ETFs.]
  • Silver prices are also powering ahead this morning, led by the Global X Silver Miners (NYSEArca: SIL), which is up nearly 3% in early trading after being given some support by the weak jobs data. While silver benefits from industrial use, it has considerable appeal as a safe-haven, as well. [November’s Top-Performing ETFs.]

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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